The parliamentary institutions committee examined on Wednesday government plans to abolish the social support agency and transfer its responsibilities under the auspices of the finance ministry.
MPs pressed for assurances that all current beneficiaries would continue to receive support without interruption during the transition.
Deputy minister to the presidency Irene Piki told the committee that transitional arrangements include a clearing team to process all applications submitted this year.
She also confirmed the establishment of a special account at the central bank to receive donations from individuals and organisations to support students.
Akel MP Georgios Loukaides welcomed the abolition but warned that state funding must replace private donations to guarantee support.
“Students should not have to depend on the goodwill of companies,” he stressed, calling for around €3 million to secure continuity.
Accountant-general, Andreas Antoniades, said the grants and benefits service has the administrative capacity to absorb the agency’s functions, remarking that 1,800 applications remain pending and must be processed promptly.
Diko MPs Zacharias Koulias and Pavlos Mylonas highlighted the need for clear criteria for beneficiaries and proposed that grants be offered regardless of the amount required while preventing misuse of public funds.
Antoniades added that while donations could continue through the grants service, private contributions are expected to fall by as much as 70 per cent following the agency’s closure.
The committee also debated transparency rules for donations.
The government proposes that contributions above €20,000 require donor consent for disclosure of names and amounts.
Akel MPs countered the proposal and instead called for lowering the threshold to €5,000.
Members expressed frustration over the refusal to disclose donor identities from the agency’s previous operations, citing concerns that contributions may have been linked to political access.
State lawyer, Dena Theodorou, defended the decision, citing personal data protection laws.
Two competing legislative approaches were discussed in the hearing.
The first being the government-backed bill which focuses on full abolition and institutional transfer, and the second being a proposal from Disy and Edek MPs which seeks to retain the agency under stricter governance, limiting donations to €50,000 per donor and barring politically exposed individuals from leadership.
Akel argued that full abolition is necessary to prevent institutional entanglement and corruption, pointing to scholarship and welfare mechanisms as sufficient alternatives for student support.
The committee agreed that transitional provisions must safeguard all current beneficiaries, while the legislative framework should guarantee continuity of support and increase transparency for future donations.
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